Automotive News - March 17, 2008 - (Page 14)

14 • MARCH 17, 2008 Politics can age a car overnight Guido Reinking Ferdinand Piech, chairman of Volkswagen AG’s supervisory board, once observed that cars are holding up longer mechanically but age more quickly politically. He arrived at that conclusion at the end of the 1990s, when he was still CEO of VW. It apparently had become clear to him that the use of zinc-coated sheet metal dramatically improved the life expectancy of the vehicles VW produced. He had fought ardently to make the switch to more expensive steel, first at Audi and then at VW. Rust, once the automobile’s deadly enemy, was no longer an issue. Owners increasingly held onto their rust-free cars for seven or eight years. It’s becoming clear today how right Piech was and how quickly cars age politically. EDITORIAL STAFF 313-446-0361 E-mail autonews@crain.com Web site www.autonews.com Keith E. Crain Publisher and Editor-in-Chief comment Guido Reinking is editor of Automobilwoche, a Crain publication that covers the German auto industry. ving in the environmental zones of some downtowns. They were given those incentives in consideration of their especially high fuel efficiency or low pollution. Cars that were exempted from the vehicle tax as recently as 2005 after they met the Euro 4 emission standards early are expected to be saddled with a penalty tax in 2008. The reason: They emit too much carbon dioxide. Euro 4, which went into effect Jan. 1, 2005, regulates emissions of oxides of nitrogen, hydrocarbons, carbon monoxide and particulate matter — Vehicles that once were environmental angels have become scapegoats in just three years. but not CO2. Even the Euro 5 standards, which take effect next year for gasoline and diesel cars and the following year for light trucks, require further reductions in NOx and particulates — but not CO2. So vehicles that once were environmental angels have become scapegoats in just three years. That’s the kind of accelerated political aging that even Piech in all likelihood could hardly have imagined. established inner-city environmental zones in Germany, from which vehicles with high CO2 emissions will be banned, haven’t spurred new-car sales. The proposed CO2-based vehicle tax probably won’t boost demand, either, because potential car buyers have lost all their trust in the political process. Who is to say that something else won’t occur to our environmental politicians? Who is to say they won’t brand cars promoted with tax breaks as scapegoats three years from now? No individual makes a decision to spend money on a new car based on a political promise. Dealerships and manufacturers therefore should not expect too much from a CO2 tax. You may e-mail Guido Reinking at greinking@craincom.de Peter Brown Associate Publisher and Editorial Director DETROIT 313-446-0361 Fax: 313-446-0383 1155 Gratiot Ave. Detroit, MI 48207-2997 David Sedgwick Editor dsedgwick@crain.com Edward Lapham Executive Editor elapham@crain.com Richard Johnson Managing Editor rjohnson@crain.com John K. Teahen Jr. Senior Editor Mary Beth Vander Schaaf Deputy Managing Editor Charles Child International Editor David Kushma Retail Editor Dave Guilford News Editor Philip Nussel Special Projects Editor James B. Treece Industry Editor Karen Faust O’Rourke Insight Editor COPY EDITORS: Bob Allen, Tom Fetters, Patricia C. Foley, Kenn Jones, Gregory Skwira Susan Zavela Bamford/Graphics Editor Rick Kranz/Product Editor Quick change It can happen that quickly if political decisions are made with populist considerations in mind. Now all that could be a wonderful economic stimulus program. After all, many car buyers took the Euro 4 tax breaks as an opportunity to buy new vehicles. But I’m afraid that it will turn out differently this time. Even the recently Tax breaks to bans Here in Germany, cars promoted with tax breaks not so long ago are being threatened with bans from dri- continued from Page 12 Lutz had the courage to tell the truth To the Editor: It’s absurd for Peter Brown to criticize Bob Lutz simply because Lutz has the courage to tell the truth about human-caused global warming (“When Lutz dumps on global warming …,” March 3). As Lutz says, human-caused global warming is “a crock.” He is right, and he will be proved right. And, Mr. Brown, spare me your “scientific consensus” argument. Consensus is politics, not science. Hundreds of scientists are on record agreeing with Lutz, including some 200 who attended the March 24 International Conference on Climate Change in New York, the more than 400 who signed a December letter to the U.S. Senate environmental subcommittee and the more than 100 who declared in a 2007 letter to the United Nations that “there has been no net global warming since 1998.” That is scientific fact, not “consensus.” Human-caused global warming is the crisis du jour — just as overpopulation was in the 1960s, global cooling in the 1970s and the shredding ozone in the 1980s. And, like those “crises,” it will be proved to be a fraud. But, Brown seems to say, it’s important for Lutz to perpetrate the global-warming lie because General Motors’ brands will suffer if he doesn’t. “Brand matters,” Brown frets. Well, to journalists, the truth once mattered. It obviously no longer does to Brown. He’s more interested in fashionable posturing and politically correct pronouncements, all under the guise of his concern for GM’s bottom line. Spare me. Lutz should be lauded for the courage to tell the truth, not advised, General Motors Vice Chairman Bob Lutz, left, recently voiced doubts about human-caused global warming. Some readers wrote that they and many scientists agree with Lutz. Meanwhile, Lutz’s GM team is developing the Chevrolet Volt plugin hybrid along with conventional cars. as he is by Brown, to lie in order to gain PR points. DAN WIESE St. Louis Dan Wiese is an auto writer. cars won’t save the environment, but if they free us from foreign oil and make our world safer, I’m all for them.” If Lutz or anyone else wants to challenge those who feel the debate is over on climate change, I urge him to do some research on the topic — something that most of the outspoken celebrities and media outlets haven’t bothered to do. Start at www.junkscience.com and take the quiz at www.globalwarmingheartland.org. Prepare to be amazed. TREVOR WILL Operations Manager Titus-Will Chevrolet-CadillacHyundai Olympia, Wash. There is not a “scientific consensus” on global warming. Scientists are split over the subject, with more and more coming to the natural-cycle side of the argument. A recent study found that the onedegree Celsius warming we have had during the past decade has been wiped out by this year’s cooling. If I do purchase one of those green machines, it will be because of $4- or $5-a-gallon gasoline, not Lutz’s opinion, even though I do agree with him. MICHAEL KENNEDY Sales and Leasing Consultant Scottsdale Lexus Scottsdale, Ariz. REPORTERS: Leslie J. Allen, David Barkholz, Mary Connelly, Ralph Kisiel, Jamie LaReau, Arlena Sawyers, Robert Sherefkin, Richard Truett, Bradford Wernle, Amy Wilson Mary Raetz Director, Automotive News Data Center Debi Domby, Camille Pippen Research Assistants Dan Jones Office Manager Robertta Savage Editorial Assistant Corinne M. Price, Michael Garrison Information Center LOS ANGELES Mark Rechtin/Bureau Chief 310-739-8009 Fax: 310-832-6362 Kathy Jackson/Reporter 323-370-2481 Fax: 323-655-8157 6500 Wilshire Blvd. Los Angeles, CA 90048-4947 NEW YORK Diana T. Kurylko/Reporter Phone/fax: 908-273-6059 dkurylko@crain.com WASHINGTON Donna Harris/Reporter 540-668-7295 Fax: 540-668-7296 Harry Stoffer/Reporter 202-662-7212 Fax: 202-638-3155 814 National Press Building Washington, DC 20045-1801 MID-SOUTH Lindsay Chappell/Bureau Chief 615-371-6654 Fax: 615-371-6655 April Wortham/Reporter 615-371-6617 104 East Park Drive, Suite 315, Brentwood, TN 37027 TOKYO Hans Greimel/Asia Editor +81-3-3828-9060 Fax: +81-3-3828-9061 hgreimel@crain.com Yurakucho Denki Bldg., 20th Floor 1-7-1 Yurakucho, Chiyoda-ku, Tokyo 100-0006, Japan SHANGHAI Alysha Webb/Bureau Chief +86-21-6226-9485 Fax: +86-21-6226-9483 alyshawebb@yahoo.com TURIN Luca Ciferri/Reporter lciferri@craincom.de +39-011 961 0194 Fax: +39-011 961 0113 Viale Cavaglia, 8 10029 Villastellone (TO) Italy STAFF CORRESPONDENT: Eric Freedman/Legal file, 517-337-0269 www.autonews.com DETROIT Victor Galvan/Web Editor vgalvan@crain.com 313-446-0345 Scott Kennedy/Multimedia Editor Good for planet, good for GM To the Editor: So Bob Lutz does not believe in global warming? (“Global warming? It’s a crock — but …,” Feb. 25). He might want to consider that what’s good for the planet is good for General Motors. The difference between Personal Bob and Corporate Bob might be that the former takes the short-term view — there’s money to be made in gas guzzlers — while Corporate Bob takes the long-term view, in which sustainability matters. Hats off to GM for taking the longterm view by developing hybrid, battery and fuel cell vehicles. JOERG DITTMER Senior Industry Analyst Frost & Sullivan Palo Alto, Calif. Frost & Sullivan is a global consulting company. Lutz may be right but said it wrong To the Editor: While I applaud the spirit of Bob Lutz’s global warming comments, his cold (no pun intended) approach to the subject didn’t help his argument. He should have said something like this: “While I don’t believe in the flawed science that suggests climate change is a crisis — there is a growing mountain of evidence from thousands of scientists that shows climate change is part of our planet’s natural cycle and should not be considered a crisis — I do believe in energy independence, and for that reason I support GM’s efforts to produce green technology. Electric What ‘scientific consensus’? To the Editor: I admire Bob Lutz of General Motors for his straightforwardness. http://www.autonews.com http://www.junkscience.com http://www.globalwarmingheartland.org http://www.autonews.com

Table of Contents Feed for the Digital Edition of Automotive News - March 17, 2008

Leases grow as alternative to long loans Toyota dealers balk at upgrades Up for grabs: China importer Testing Chevy's Camaro Escalade first vehicle to get full LED headlamps Hoops fans take a shot at China Toyota will cut Tundra, Sequoia production F-150's risk-reward strategy: Ramp up before the revamp As UAW, American Axle talk, CEO Dauch in Fla. Ex-GM purchasing executive indicted Court allows higher Plastech credit line Saab sticker prices rise as sales fall; will U.S.-built 9-7X offset losses? VW plant capacity in U.S.: 250,000 units Bad cruise control switch haunts Ford Continental plans to bring r&d in-house Rieter expects to increase its global footprint Stadler: Audi considers U.S. plant Another General charges into electric cars Toyota sees its first checkered flag as sign NASCAR's paying off A pickup may figure in Kia's future Analysts: Lampert no threat to AutoNation More likely to be spent to keep suppliers alive in '08 2 suppliers plan Alabama plants UAW seeks job guarantees to end American Axle strike Revolving door continues to spin at Nissan GM, top marketers to share research Electric power steering is grabbing the wheel Delphi completes sale of interiors unit to Renco Mercedes again is true-luxury king How electric power steering works It's time for dealer-factory collaboration Ford must close stores but remain open to diversity The small print Here's a question for Obama, Clinton Didn't you ever hear of a halo? Hurray for affordable performance cars Politics can age a car overnight Good for planet, good for GM What 'scientific consensus'? Lutz may be right but said it wrong Lutz had the courage to tell the truth Big Apple isn't very green 23 finalists in running for PACE honors Canada sales up 14.5% in Feb. RV shipments drop 7.1% in Jan. Wagoner: No sure thing on state air rules Conquest sales, Asia growth boost ADP Brockman: Reynolds focuses on service OEConnection links to ADP Geneva goings-on Judge: Dealer suit over transfer of GM franchise can proceed Honda will build Ridgeline in Alabama So who's running the show at Chamco? GM seeks Plastech tooling Federal-Mogul reports gains Chrysler sells plant to Fiat BMW's new sales boss Odell is named COO at Ford of Europe Strike dents GM truck output Tony Stewart blows a gasket Illingworth leaving — and staying with — Toyota A note to eager auto execs: Invaders sometimes get icy reception in Russia Hush, hush: Baby Nason on board For rent: Ford's PAG palace on the West Coast Chrysler cuts Calif. studio

Automotive News - March 17, 2008

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